Cote on Difference Between Government and Business

Honeywell CEO David M. Cote tells the CFO Network in Washington, D.C., why business requires a different business model to government.

This transcript has been automatically generated and may not be 100% accurate.

I ... in general and we're going to a period of pretty profound change in the way corporations are governed what's good about what's bad about it what you think about ... the outcome ... I think it's a little too much ... focus on process ... as opposed to results ... and ... I see too often discussions about how line beside the dumb like government because ... shareowners bow so ... should be democracy everybody gets a vote in ... I don't think it's true I think it's the wrong parallel if yet ... the boys had a new government is the big thing here is you want sustainability and trusting institutions ... for that you're willing to give up a lot of efficiency ... write just everything were just talking bout twenty oh five or thirty six independent contractors ... it's why no one person could do anything down here as they ... you want the sustainability ... you know what that with this this with businesses you want efficiency ... you want that drive for effectiveness for ... how can I do this better than the other guy how can a beat them so that I have a ... better product immediate take more risks ... if you want take more risk it means the company's Avago bankrupting our companies to be supplanted by another technology ... the half to allow that to be able to happen ... within that enabling system of trust in your institutions that Denise did you start reading unlike a democracy I think that's a limo ... and the best governance I'm Camry check mark you can get for ... have you done everything right you have self evaluations of all is ... that the of the day that ... two big things in my view the board on is ... his first you have the right person running the place and you have a succession plan to make sure short-term and long-term ... you get continuity with good people ... the second one is don't do a deal with the Nikkei Leah ... you know those two things you're probably doing the ... best things you can do is up ... as a director all the other stuff ... in its tiny interesting but ... I think we get hung up on process is opposed to what the results mean that